Table of Contents
0.0 EXECUTIVE SUMMARY
- Combined, personal motor and household premiums were worth €108.0
billion in 2005
- ... with over 40% of banks active in motor insurance and over 60% in
household insurance
- The least developed non-life bancassurance markets are Italy and Sweden
- German banks continue to display an overwhelming preference for tied
agency distribution
- Use of brokerage models is fairly common in Austria, the Netherlands,
Spain and the UK / Ireland
- Joint ventures for motor and house. policies are most in evidence in
France and the Netherlands
- Austria: Wüstenrot Versicherung is the largest of the country' s
bank-owned underwriters
- Belgium: bank-owned insurers make important advances in both motor and
household insurance
- France: entry into non-life insurance of La Banque Postale could boost the
share of bancassurers
- Germany: the ossified nature of distribution partnerships may be stifling
innovation
- Italy: although keen to grow in non-life ins., Italian banks may continue
to shun motor insurance
- Netherlands: ABN AMRO Schadeverzekering has developed rapidly in recent
years
- Nordic region: the launch of Tre Kronor Försäkring in Sweden may
help bancass. to develop
- Portugal: bank-owned insurers account for more than 60% of total non-life
insurance premiums
- Spain: banks increasingly demonstrate a preference for brokerage or
quasi-brokerage models
- UK / Ireland: the captives of HBOS and Royal Bank of Scotland are notable
for their innovation
- For a number of reasons, many banks punch below their weight in motor and
house.insurance
- ... although they can potentially turn growth in cons. use of remote
channels to their advantage
- Growth in web-based aggregators, brokers and price comp. services presents
a new challenge
1.0 INTRODUCTION
- Finaccord
- Creditor insurance
- Mobile telephone insurance
- Travel insurance
- PartnerBASE™
- Rationale
- The advance of banks in life insurance and retirement savings is amply
documented...
- ... although this report offers the first in-depth review of activity in
motor and household insurance
- Methodology
- The research is based on a sample of 680 banks serving retail customers
2.0 EUROPEAN OVERVIEW
- Introduction
- Market size and segmentation
- Growth in house. insurance exceeds that for personal motor insurance
between 2001 and 2005
- Gross written premiums for personal motor insurance advance most rapidly
in the Nordic region
- Household insurance in Italy is worth less than in the Netherlands, the
Nordic region and Spain
- Penetration rates
- Personal motor insurance
- Many small and medium-sized banks in Austria, Germany and Spain promote
motor insurance...
- Household insurance
- ... and banks in Italy and the UK display much greater enthusiasm for
marketing house. policies
- Operating models
- Personal motor insurance
- Use of single, external partners for personal motor insurance is most
widespread in Germany...
- ... while several of the major networks in Belgium, France and the N' lands
use captive entities
- Household insurance
- Generally, banks are more likely to use captive or joint venture
underwriters for household risks
3.0 AUSTRIA
- Introduction to the banking sector
- The Austrian retail banking market remains comparatively fragmented
- Bank Austria Creditanstalt serves 1.8 million customers in its domestic
market
- The Austrian Federation of Trade Unions assumed 100% ownership of BAWAG
PSK in 2004
- Like its rivals, Erste Bank has ambitious growth plans in Central and
Eastern Europe
- RZB ultimately supports 571 autonomous local credit co-operatives
- Many other banks operate at a local or regional level within Austria...
- ... including several institutions whose primary focus lies on retail
lending
- Market overview
- Household insurance gross written premiums exceed €1 billion for the
first time in 2005
- Bancassurance
- Taken at face value, Austrian banks appear to have had limited success in
non-life insurance...
- ... although much of their business is intermediated by internal and
external brokers
- Survey results
- Motor insurance
- Over half of Austrian banks offering motor pols. work with a single,
external partner in this field...
- ... although several of the country' s major banking groups possess their
own internal brokerage
- Household insurance
- Sparkassen Versicherung is the main provider of household insurance to
Austria' s savings banks
- Competitor analysis
- Both Raiffeisen Versicherung and Porsche Versicherung achieve strong
premium growth
- ... and Sparkassen Versicherung sees its market share for motor insurance
rise to 0.68%
4.0 BELGIUM
- Introduction to the banking sector
- In spite of substantial restructuring, Belgium' s retail banking market
remains crowded
- Dexia, Fortis, ING and KBC lead the way...
- ... although numerous medium-sized and small banking ventures challenge
their dominance
- Market overview
- The combined market for personal motor and household insurance is worth
over €3 billion
- Bancassurance
- Bank branches gain ground across most forms of non-life insurance in
Belgium...
- ... and the share of bank-owned insurers in both motor and household
insurance is substantial
- Survey results
- Motor insurance
- Ethias underwrites motor insurance for both Crédit Agricole and
Dexia...
- ... while the other big three banking groups and Argenta Spaarbank utilise
their captives
- Household insurance
- In some instances, the operating models and partnerships are different for
household insurance
- Competitor analysis
- Belgium' s bank-owned insurance companies continue to make progress in
non-life insurance
5.0 FRANCE
- Introduction to the banking sector
- Mutual and co-operative banks continue to play a substantial role in
French retail banking...
- ... albeit merger and acquisition activity have changed the landscape in
recent years
- Most foreign entrants fail to make significant headway in the problematic
French market
- ... with Abbey, Egg and San Paolo IMI having all withdrawn completely
- Specialised lenders also play an important role in French retail banking...
- ... as do financial services firms belonging to some of the country' s
largest retailing groups
- The Crédit Municipal institutions: specialising in low value loans
charging low interest rates
- La Poste is playing an increasingly important part in the French retail
financial services scene
- Market overview
- Household insurance outgrows personal motor insurance over the 2001-5
period
- Bancassurance
- French banks have achieved only modest growth in non-life insurance in
more recent years
- Survey results
- Motor insurance
- All of the main retail banking networks are fully active in the motor
insurance market...
- ... with many underwriting motor insurance policies through captive or
joint venture entities
- ... although BNP Paribas is tied to Avanssur, a subsidiary of AXA, for
this line of insurance
- Household insurance
- HSBC' s joint venture with Swiss Life is active in household insurance, but
not motor insurance
- Home surveillance: a new bancassurance policy related to home ownership?
- Home surveillance is characterised by the provision of three main service
elements...
- ... although to a considerable extent, the market is still in the process
of being defined
- Financial institutions offer a logical route to market for home
surveillance...
- ... and distribution partnerships, generally, constitute the key success
factor
- Competitor analysis
- Almost all bank-owned insurers in France are expanding their share of
non-life insurance...
- ... with Crédit Mutuel' s ACM Iard leading the way for motor
insurance...
- ... and Crédit Agricole' s Pacifica for household insurance
6.0 GERMANY
- Introduction to the banking sector
- Commercial banks struggle in the face of savings bank and credit
co-operative competition
- Germany' s savings banks: continuing adherence to public sector insurers
remains the norm
- R&V is able to meet virtually all the insurance needs of credit
co-operative customers
- Foreign entrants show that reasonable returns can be generated from German
retail banking
- Germany' s crowded banking sector provides other feasible bancassurance
opportunities
- Market overview
- Together, personal motor and house. insurance premiums grow at less than
1.0% per annum
- Bancassurance
- The distribution share of banks in total non-life insurance is unlikely to
exceed 10%
- Survey results
- Motor insurance
- Almost two thirds of banks serving consumers offer motor insurance to
their customers...
- ... with the vast majority of these acting as a tied agent for a single
underwriting partner...
- ... a finding relevant to many private sector banks, as well as savings
banks and co-operatives
- A minority of banking institutions have opted for alternative operating
models
- Household insurance
- Penetration rates and operating models are broadly similar for household
insurance
- Competitor analysis
- R&V Versicherung outgrows its public sector rivals by a considerable margin
- Direct Line expands its business although the pace of change in Germany is
slow
- Irrespective of the channels used, it is difficult to advance rapidly in
German motor insurance
- R&V Versicherung also outstrips most public sector underwriters in
property insurance
7.0 ITALY
- Introduction to the banking sector
- Consolidation and rationalisation change the face of retail banking in
Italy...
- ... with a fast-growing second tier of banks ready to challenge the big
six groups
- Acquisitions by ABN AMRO and BNP Paribas open the way to further foreign
entrants...
- ... although some have gained exposure already through joint ventures in
consumer finance
- Smaller specialised lenders service the market for cessione del quinto
loans
- Market overview
- The average annual growth rate for both personal motor and household
insurance is 4.1%
- Bancassurance
- Italy' s non-life bancassurance channel shows stronger signs of development
in 2005...
- ... although its aggregate distribution share is just 3.4% for property
insurance
- Banks in Italy are likely to grow their distribution share of both motor
and household insurance
- Survey results
- Motor insurance
- Many of the larger Italian banks have been reluctant to enter the motor
insurance market...
- ... although Direct Line, Genertel and Zurich each lay claim to important,
exc. partnerships...
- ... and several banks offer motor insurance policies through either joint
ventures or captives
- Household insurance
- Over 60% of banking entities surveyed are active in distribution of
household insurance...
- GPA Assiparos collaborates with Banca Intesa for many forms of non-life
insurance
- Eurizon Tutela, a captive belonging to San Paolo IMI, also distributes
through Bancoposta
- Credito Valtellinese and Veneto Banca have both developed an internal
brokerage system
- Competitor analysis
- Banca Carige possesses the largest bank-owned non-life bancassurer in
Italy...
- ... although smaller underwriters operating in this field are achieving
more rapid growth
- In motor insurance, only Direct Line and BPB Assicurazioni make serious
progress...
- ... although the development of bank-owned underwriters in property ins.
is more promising
8.0 NETHERLANDS
- Introduction to the banking sector
- Three financial services giants dominate retail banking in the
Netherlands...
- ... albeit a number of smaller institutions fulfil specialist roles in the
Dutch market
- Market overview
- Gross written premiums for personal motor insurance in the Netherlands
stagnate in 2005
- Bancassurance
- Bank branches distribute around 11.0% of all non-life insurance policies
in the Netherlands
- Survey results
- Motor insurance
- Bank distribution of motor insurance is mainly restricted to the larger
retail networks...
- ... with both ABN AMRO and Rabobank having sold a stake in captive
insurers in recent times
- Household insurance
- Fortis Bank, ING Bank, Postbank and SNS Bank all use a captive model for
household policies
- Competitor analysis
- Combined banking and insurance groups account for over 25% of total
non-life premiums
- Most of the leading bank-owned underwriters are gaining market share in
motor insurance...
- ... with ABN AMRO Schadeverzekering having doubled its market share in
property insurance
9.0 NORDIC REGION
- Introduction to the banking sector
- Four pan-Scandinavian banking institutions battle against mainly smaller
national competitors
- Danske Bank: the bank lays claim to 465 branches across its five main
countries of operation
- Handelsbanken: expansion in the Nordic region achieved through org. growth
and acquisitions
- Nordea: a leading financial services group in the Nordic and Baltic regions
- SEB: strategic acquisitions fuel expansion across Northern Europe
- Denmark: GE Money Bank and a series of smaller banks provide the
competition
- Norway: Den norske Bank has shielded itself from takeover by merging with
Gjensidige
- Sweden: FöreningsSparbanken lays claim to 4.1 million retail banking
clients in Sweden...
- ... although the incumbents are being challenged by both retailer banks
and foreign entrants
- Market overview
- The combined market for motor and household insurance climbs to €7.24
billion in 2005
- Bancassurance
- Non-life bancassurance is developed in Denmark and Norway in comparison to
Sweden...
- ... although FöreningsSparbanken and the Swedish savings banks are
stepping up their activity
- Survey results
- Motor insurance
- Few banks in Sweden have elected to enter the motor insurance sector thus
far...
- ... although the expansion of Tre Kronor Försäkring promises to
change the picture in future
- Codan' s Privatsikring collaborates for motor insurance with three smaller
banks in Denmark...
- ... although it competes with several other insurance underwriters for
bancassurance mandates
- Household insurance
- Sparbanken Nord' s link with Dina Förs. may change with the launch of
Tre Kronor Försäkring
- Competitor analysis
- Topdanmark' s Danske Forsikring cedes market share of total non-life
insurance in Denmark
- Terra Skadeforsikring comfortably outpaces Sparebank 1 Skadeforsikring,
its larger rival
10.0 PORTUGAL
- Introduction to the banking sector
- Foreign entrants exert a strong influence of the development of the
banking market...
- ... with many specialised lending firms belonging to overseas parents
- Market overview
- Household insurance gross premiums written in Portugal totalled just
€253.9 million in 2005
- Bancassurance
- Portuguese bancassurance benefits from bank ownership of several of the
largest insurers
- Survey results
- Motor insurance
- Motor insurance is provided by almost all of Portugal' s major retail
banks...
- ... although few of the country' s specialised lending firms are active in
this field
- Only AXA Seguros lays claim to more than one exclusive bancassurance
relationship
- Millennium BCP is now classifiable as a joint venture following the sale
of a 50% stake to Fortis
- Household insurance
- Over 50% of banking institutions are active in the intermediation of
household insurance...
- ... with more use of captive insurers in evidence than for motor insurance
- Competitor analysis
- Bank-owned underwriters in Portugal secure more than 60% of total non-life
premiums written
11.0 SPAIN
- Introduction to the banking sector
- The main wave of consolidation in Spanish retail banking has now taken
place
- Many of Spain' s savings banks are characterised by an independent,
entrepreneurial spirit
- Caser occupies a unique position in the Spanish bancassurance market
- New entrants may provide fresh bancassurance opportunities
- Specialised lenders and auto captives complete the list of potential
non-life insurance partners
- Market overview
- The household insurance market surges at an average growth rate per annum
of 13.2%
- Bancassurance
- Banking institutions in Spain have made some progress in non-life
bancassurance...
- ... and their share of policies distributed may be higher than indicated
by the official figures
- Survey results
- Motor insurance
- Over two thirds of consumer-oriented banks in Spain are active in selling
motor insurance...
- ... with many having gravitated towards use of multiple partners or a
brokerage model
- Zurich' s exclusive partners include Banca Pueyo, Banco Halifax Hispania
and Deutsche Bank
- Household insurance
- The vast majority of banking entities surveyed are active in distribution
of household insurance
- Only five underwriters hold two or more exclusive bancassurance
partnerships in this domain
- A number of the larger banking networks insure household risks through
captives
- Biharko Seguros is the joint venture firm utilised by three savings banks
in the Basque region
- Competitor analysis
- The majority of non-life bancassurers in Spain are now making significant
advances...
- ... including Santander Seguros, which almost quadrupled its market share
from 2001 to 2005
12.0 UNITED KINGDOM / IRELAND
- Introduction to the banking sector
- Structural changes to the UK retail banking landscape have reached a hiatus
- New entrants have experienced mixed fortunes
- At the highest level, the market segments into banks, building societies
and specialised lenders
- Banks demonstrate little homogeneity in their approach towards
establishing partnerships
- Building societies gain market share of retail financial services at the
expense of banks
- Specialised lenders are a diverse category...
- ... with many belonging ultimately to larger and better-known financial
institutions
- In Ireland, the trad. duopoly of AIB and Bank of Ireland has been
challenged by new entrants
- Market overview
- Gross premiums written for household insurance race past €11 billion
in 2005
- Bancassurance
- Bank-owned distribution is boosted by the captive operations of HBOS and
RBoS...
- ... however, a smaller percentage of customers perceive that they are
buying from their bank
- In general, Irish banks display less enthusiasm for non-life bancassurance
than those in the UK
- Survey results
- Motor insurance
- Competition from rival distribution channels makes it tough for banks to
thrive in motor ins....
- ... with a number of major banking entities having elected not to mount a
challenge in this arena
- Royal Bank of Scotland' s captive underwriters provide motor policies to
rival banking networks
- HSBC is the largest of the UK banks to prefer a brokerage model for motor
insurance
- Household insurance
- Over two thirds of banks in the UK and Ireland intermediate household
insurance policies
- Norwich Union' s roster of partnerships is more impressive than that of
Royal & SunAlliance
- Royal Bank of Scotland' s insurers are increasingly targeting non-captive
distribution ties
- Both AXA Insurance and Legal & General lay claim to valuable relationships
in this field
- Lloyds TSB has opted for a mixed operating model, as has the Irish branch
of Bank of Scotland
- Competitor analysis
- The non-life business of Royal Bank of Scotland saw market share fall in
2004 and 2005
- ... although it continues to offer a key point of reference in European
non-life bancassurance
GRAPHICS / TABLES
- Banks and other lending institutions contacted for the research, segmented
by type and by country
- Personal motor and household insurance gross premiums written in Europe,
2001-5
- Personal motor insurance gross premiums written in Europe split by
country, 2001-5
- Household insurance gross premiums written in Europe split by country,
2001-5
- Comparison of bank distribution of personal motor insurance in Europe, 2006
- Comparison of bank distribution of household insurance in Europe, 2006
- Comparison of operating models used for personal motor insurance in
Europe, 2006
- Comparison of operating models used for household insurance in Europe, 2006
- Gross premiums written for personal motor and household insurance in
Austria, 2001-5
- Bank provision of motor insurance in Austria: penetration rates, op.
models and partner market shares, 2006
- Bank provision of household insurance in Austria: pen. rates, op. models
and partner market shares, 2006
- Market shares for key bancassurance competitors in non-life insurance in
Austria, 2003-5
- Market shares for key bancassurance competitors in motor insurance in
Austria, 2003-5
- Gross premiums written for personal motor and household insurance in
Belgium, 2001-5
- Bank provision of motor insurance in Belgium: penetration rates, op.
models and partner market shares, 2006
- Bank provision of household insurance in Belgium: pen. rates, op. models
and partner market shares, 2006
- Market shares for key bancassurance competitors in non-life insurance in
Belgium, 2003-4
- Gross premiums written for personal motor and household insurance in
France, 2001-5
- Bank provision of motor insurance in France: penetration rates, op. models
and partner market shares, 2006
- Bank provision of household insurance in France: pen. rates, op. models
and partner market shares, 2006
- Market shares for key bancassurance competitors in non-life insurance in
France, 2003-4
- Market shares for key bancassurance competitors in motor insurance in
France, 2004
- Market shares for key bancassurance competitors in household insurance in
France, 2004
- Gross premiums written for personal motor and household insurance in
Germany, 2001-5
- Bank provision of motor insurance in Germany: pen. rates, op. models and
partner market shares, 2006
- Bank provision of household insurance in Germany: pen. rates, op. models
and partner market shares, 2006
- Market shares for key bancassurance competitors in non-life insurance in
Germany, 2001-4
- Market shares for key bancassurance competitors in motor insurance in
Germany, 2001-4
- Market shares for key bancassurance competitors in property insurance in
Germany, 2001-4
- Gross premiums written for personal motor and household insurance in
Italy, 2001-5
- Bank provision of motor insurance in Italy: penetration rates, op. models
and partner market shares, 2006
- Bank provision of household insurance in Italy: pen. rates, op. models and
partner market shares, 2006
- Market shares for key bancassurance competitors in non-life insurance in
Italy, 2001-5
- Market shares for key bancassurance competitors in motor insurance in
Italy, 2001-5
- Market shares for key bancassurance competitors in property insurance in
Italy, 2001-5
- Gross premiums written for personal motor and household insurance in the
Netherlands, 2001-5
- Bank provision of motor insurance in the Netherlands: pen. rates, op.
models and partner mkt. shares, 2006
- Bank provision of household ins. in the Netherlands: pen. rates, op.
models and partner mkt. shares, 2006
- Market shares for key bancassurance competitors in non-life insurance in
the Netherlands, 2003-4
- Market shares for key bancassurance competitors in motor insurance in the
Netherlands, 2003-4
- Market shares for key bancassurance competitors in property insurance in
the Netherlands, 2003-4
- Gross premiums written for personal motor and household insurance in the
Nordic region, 2001-5
- Bank provision of motor ins. in the Nordic region: pen. rates, op. models
and partner mkt. shares, 2006
- Bank provision of household ins. in the Nordic region: pen. rates, op.
models and partner mkt. shares, 2006
- Market shares for key bancassurance competitors in non-life insurance in
the Nordic region, 2002-5
- Gross premiums written for personal motor and household insurance in
Portugal, 2001-5
- Bank provision of motor insurance in Portugal: pen. rates, op. models and
partner market shares, 2006
- Bank provision of household insurance in Portugal: pen. rates, op. models
and partner market shares, 2006
- Market shares for key bancassurance competitors in non-life insurance in
Portugal, 2001-4
- Gross premiums written for personal motor and household insurance in
Spain, 2001-5
- Bank provision of motor insurance in Spain: penetration rates, op. models
and partner market shares, 2006
- Bank provision of household insurance in Spain: pen. rates, op. models and
partner market shares, 2006
- Market shares for key bancassurance competitors in non-life insurance in
Spain, 2001-5
- Gross premiums written for personal motor and household insurance in the
UK, 2001-5
- Bank provision of motor insurance in the UK: penetration rates, op. models
and partner market shares, 2006
- Bank provision of household insurance in the UK: pen. rates, op. models
and partner market shares, 2006
- Market shares for key bancassurance competitors in non-life insurance in
the UK, 2001-5
- Major, exc. affinity and partner. mktg. rels. for pers. non-life ins. in
the UK held by RBS Ins. Group, 2006
- Major, exc. aff. and partner. mktg. rels. for pers. non-life ins. in the
UK held by RBS Ins. Group, 2006 (cont.)
- Major, exc. aff. and partner. mktg. rels. for pers. non-life ins. in the
UK held by RBS Ins. Group, 2006 (cont.)
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